You may say... OK, I will collect GST... but how...what is the process?

There's only two types of people in the world

The ones that entertain and the ones that observe

Well baby I'm put-on-a show kind of girl

---- Circus, Britney Spears

My dear sharp-minded HR, FM, Tax pro,

Where do you go into, pro? ones that entertain or ones that observe?

Wherever you go into -

If you wanna learn GST collection process on employees... then just rephrase the above song and sing it like this -

"There's only two types of expenses in the employees world,

The ones that are in the employment contract and ones not in there

Well baby I'm put-on-a show kind of GST"

--- Paraphrased Circus...

I really mean it... every-time I read GST collection process on employees, the above lyrics echo in my ears... and I face the music...

And I swear on my plush puppy... just read the below... and if you don't face the music... then do me in...

BTW... you may dig this better if you first read my pithy ripple @

Ok... here we go...

Hanuman is an employee of "Ram Rajya Limited"; He provides his services to RRL (Ram Rajya Limited) and draws salary + allowances + perquisites + reimbursements...

Now, as per GST law... GST should be charged on every service (section 2(92), 9 etc.)... and so on this too...

But Hanuman is a chosen one... he doesn't have to charge GST... and nor would RRL collect GST on RCM...

Why?... because he is god's associate? Oh!!! come on...

He is a chosen one because...

Because services provided by an employee to an employer (in the course of/ in relation to employment) are exempt (Clause 1 Schedule III);

and so dear ones... that is true for all of us too... for all of we employees... so we are also chosen ones...

And our employee services are GST free too...

But... sharp minded... things are not so simple always... .

In fact, things are simple only till employer and employee are involved, but the moment some third party gets involved... we get into deep water..

Thats true, say Hanuman goes to Kishkindha for a business trip and stays in a hotel...

On coming back, he presents his bills for reimbursement... for his hotel expenses in Kishkindha...

And now your RRL's complication starts... and that is covered in point 1(ii) below:

But... if you as RRL... want it to be a cakewalk... then..

.... do these 2 things...

1. Divide the purchases into 2 parts:

(i) Purchases made from registered suppliers and

(ii) Purchases made from unregistered dealers...

2. Give these clear instructions to your employees:

(i). Tell your GSTIN to all your employees (and their wives or girlfriends or husbands or boyfriends).... I don't know how... whether you put the number on notice board... or on their Icard... or wherever... but tell them...

(ii). Tell them ruthlessly... to get your GSTIN punched... on every bill... that they wish to get reimbursed...

(iii). Tell them to get the bill on your name... and last...

(iv). Tell them to ask the supplier to punch his GSTIN on the bill.

Well the first 3 points are simple... but this (iv) point is real killer...

If the supplier quietly punches his own GSTIN on the bill, then guys you are safe... but if he doesn't then... be ready... to take the bullet of... point number 1 (ii)

Guys... this supplier... yes... this supplier... is not a registered supplier... And the bullet is that, now the law demands you to collect GST... section 9(4)... under RCM...

The best course out there for you to follow... there would be...

Wait....

Do you remember point number 2(iii)? Nope....

Then first bother your little head sitting idly on the top of your two shoulders to remember it...

Meanwhile I, pilgarlic... would prepare my next ripple on 1(ii)...

And... just to tell you, I would write 2 more ripples on this... and would hunt and peck the link here ...<_____________________> and here <____________________>

Wishing you are very good luck with your employees...

Yours unruly pilgarlic...